Tesla pursues Indian market entry despite Musk's visit postponement: Report
While Elon Musk's visit to India has been postponed, its plan to navigating the Indian electric vehicle (EV) landscape remains intact. The brand is moving forward with its application for the new electric vehicle manufacturing policy, as reported by CNBC-TV18. In fact, Tesla's Chief Sourcing Officer is reportedly scheduled to visit India soon to meet with key component manufacturers. The automaker aims to increase component sourcing from India to $15 billion over the next five years.
Tesla recently solidified its presence in the Indian market by announcing a strategic agreement with Tata Electronics for component sourcing. Additionally, Tesla's collaboration with Sona Comstar has also been a significant step forward. Notably, Sona Comstar's recent inauguration of a new manufacturing facility in Mexico.
This focus on India has grown in importance for Tesla, especially considering the company's recent sales slowdown in China. While Musk's visit was expected to announce Starlink's entry into India, this may have been delayed due to the government's model code of conduct during elections. Musk himself cited heavy responsibilities at Tesla for the postponement. The company has faced declines in major markets, such as China, with BYD surpassing Tesla in annual production in 2023. Tesla shareholders are likely be seeking clarity from Musk on plans to boost growth and introduce new vehicles.
Tesla is scheduled to hold an earnings call on 23 April to discuss first-quarter results with investors and analysts. During the call, Musk is expected to address concerns about negative growth in China, the rollout plan for the Model 2, and Tesla's AI strategy. Tesla's stock price has fallen 40 per cent this year, further compounded by a recent recall of 4,000 Cybertrucks due to an accelerator pedal issue.
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